That’s welcome news, not just for companies like Dexus, but also for small businesses in city centres that have been bleeding customers for two years amid pandemic lockdowns.

A larger proportion of companies are growing and taking space, rather than decreasing and downsizing, said Kevin George, the group’s executive general manager for offices.

Finance, technology and professional services firms are proving the most resilient.

“We continue to see the strongest demand from small to medium customers and are encouraged by a number of larger customers in the portfolio looking through the current environment and extending their leases mid-term.”

“We are seeing signs of leasing recovery in our Sydney portfolio,” Mr George said.

However, with Omicron is still impacting confidence – creating challenges in supply chains and delaying the return of workers – Dexus expects those challenges to persist until March.

“I think it’s going to be probably late March, early April before things normalise,” Mr Steinberg said.

Dexus reported a net profit of $803.2 million for the half-year, up 82 per cent on the previous corresponding period, a result boosted by large valuation gains of $486.2 million across its property portfolio.

Its funds from operations – a key earnings metric in the property sector – were $396.7 million, up 5.6 per cent on the previous period.

Rent increases and the acquisition of Capital Square in Perth boosted fund inflows from its office portfolio, while industrial earnings lifted from the addition of Jandakot Airport to its portfolio and other completed developments.

A distribution of 28¢ per security will be paid on Monday 28 February.

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Dexus maintained its guidance of distribution per security growth above 2 per cent for the full financial year.

Shares in the $11 billion company were up 2 per cent at $10.37 in afternoon trading.

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